Renters insurance is a type of insurance that covers your belongings and liability if they are lost, stolen, or damaged. It also covers you and your family in the event of an injury on the property. But what does this mean and why do you need it? Let’s take a look at renters insurance and its benefits.
Why Do I Need Renters Insurance?
Renters insurance is something that is rarely thought about unless your property is damaged or stolen. We’ve all done it. You go into your house to get something and a quick trip to the bathroom to brush your teeth is over in a flash.
Before you know it, your toothbrush and toothpaste have been spirited away into a sea of the unknown. This is what happened to one Queensland woman last year who noticed her kids’ toothbrushes were missing and it was no doubt a big annoyance. In the U.S., renters insurance can be expensive and is sometimes overlooked by people when it comes to insurance.
However, it is vital to take out insurance to cover any damage that may happen to your belongings if you aren’t at home or responsible for them.
What Is Covered By Renters Insurance?
Just like any other insurance policy, renters insurance covers your belongings. The policies offered by insurance companies have many different plans, with different amounts and coverage options. Coverage can be broken down into theft and loss.
Theft coverage covers if a person loses their keys, wallet, or purse and accidentally leaves them at your home or apartment. Loss coverage covers if someone’s belongings are stolen or destroyed in an accident at your home or apartment. The deductible amount for theft coverage is usually low, between $50 and $100, while the deductible for loss coverage varies from state to state.
If your belongings are stolen, you pay the deductible. If your belongings are damaged, your landlord will cover the deductible.
What Does Renters Insurance Cover?
The main reasons for having a renters insurance policy are theft and loss or damage of personal belongings. It also covers the other things that could happen to you.
These could include: Warranties If your apartment is in a building and you’re in the leasing process, a security deposit is usually due to secure your apartment for the long-term. This deposit covers any damages or belongings stolen in the process of leasing a unit, but it will only be released when you move out.
The renter’s insurance will cover you for these fees. This protects you and protects your landlord. Perpetual Period If you use the apartment for the long-term, the property may be in a lease agreement.
How Much Does Insurance Cost?
Renters insurance is affordable, but in terms of cost, it falls within the second-cost tier. This means that the premium is slightly higher than the cost of your car insurance. It costs about 0.75% of the value of your possessions per year.
This can be as low as $0.24 per month or as high as $6.15 per month. The cost is determined based on how many inhabitants live on the property and how many items are insured.
What Is Coverage? Your belongings can be covered under renters insurance as long as they are in your possession when an accident occurs. The coverage can be either exclusive or add-on coverage. If your item or possessions is destroyed or stolen, renters insurance can replace it or reimburse you for the costs of the replacement.
Getting renters insurance doesn’t mean you have to get out the full first aid kit in the event of an accident or something happening to one of your possessions. Using just what you have on hand can be enough to handle most situations and you could still feel safe knowing that your possessions are covered.